Recruitment to increase in 2015

As the UK’s economy continues to recover, 50% of British businesses are planning to employ extra workers in 2015

The CBI(Confederation of British Industry) said all regions of the UK will benefit from more employment but Scottish regions will see the most recruitment with big plans for job creation.

Employers also stated they would give staff pay rises in 2015, although at a “cautious rate” as productivity still needs improving and competition is tough.

UK workers are finally benefiting from an increase in real wages – where pay growth overtakes inflation – after 6 years of decline. The report found that more permanent than temporary jobs would be created, which shows a degree of confidence from businesses in 2015.

Katja Hall, the CBI’s deputy director general, said a number businesses were worried that they will not be able to fill some jobs due to the lack of suitably skilled candidates. This, as well as concerns over regulation directed at the flexible labour market, were considered the biggest drawbacks to UK’s competitiveness.

“It’s a concern that the UK’s growing skills gap is now seen as the number one workforce threat to the long-term health of its economy,” she stated.

Surprisingly The CBI has argued that controversial zero-hours contracts, where workers are hired without being guaranteed a minimum number of hours, are an important part of the jobs market.

There are about 1.4 million Zero-Hour contracts in the UK, they have been criticised by unions, who claim workers employed on such terms are paid less on average and have fewer employment rights than permanent employees.

Katja Hall said: “Unstitching the fabric of the UK’s flexible labour market would risk piling new costs onto businesses and ultimately put jobs at risk, so politicians must take care.

“The UK’s flexibility makes it attractive as a place to create jobs and it has been crucial to the recovery, allowing firms to hire quickly or tailor their staff levels to meet customer needs.”

She added that the living wage, based on the amount people need to earn to cover the basic cost of living and which is higher than the minimum wage, should remain voluntary. “Many firms simply cannot afford it,” she said.

The statements from CBI demonstrate the need for an affordable workforce which are crucial to keeping businesses across the UK alive, we all have a part to play on this road to recovery – businesses, recruiters and contracting solution providers.

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